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US ethanol industry expands focus to lower-carbon aviation sector

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The US ethanol industry is lobbying the Biden administration to ensure lower-carbon aviation fuel made from ethanol will qualify for subsidies under the Inflation Reduction Act, arguing such provisions are crucial to meeting US climate goals

The campaign reflects the ethanol industry's desire to expand into aviation following years of stagnant demand for the corn-based fuel as an ingredient in gasoline, and projections that motor fuel demand will fall in the future due to better efficiency and the ascent of electric cars.

Sustainable aviation fuel is considered vital to decarbonizing the hard-to-electrify airplane industry and the Biden administration is targeting at least 3 billion gallons of SAF production per year in the United States by 2030 as part of its broader push to fight climate change.

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